Latest Debt News
Credit cards offer 'bad debt solution'
27/01/2006 16:17:00
Credit cards offer an effective way to manage debt if consumers are financially prudent, a leading expert has said.
Alluding to the recent debate surrounding the high level of credit made available to many consumers, Frances Walker of the Consumer Credit Counselling Service said that it is possible for individuals to manage multiple credit cards if they act sensibly.
Whilst acknowledging that many consumers get into financial difficulties if they do not manage their cards effectively, Ms Walker explained that it is still possible to use credit cards as a means for managing expenditure.
"If you have six cards and keep up the minimum payments, then it won't show up as bad debt," she commented.
The comments follow moves from a host of leading credit providers to be more responsible in the way they lend money.
Abbey, the Co-operative bank, Egg and Barclays said last month they would begin sharing more information about borrowers in an attempt to head off the potential for large individual debts accumulating.
Recent figures released by Apacs showed that 90 per cent of adults hold one or more payment cards.
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